Home > EDA, EDA industry, Magma Design Automation, Synopsys > Synopsys acquires Magma! And, another one bites the dust!!

Synopsys acquires Magma! And, another one bites the dust!!


Wow! Yesterday, Synopsys signed a definitive agreement to acquire Magma Design Automation Inc. This news is interesting, and not surprising. This acquisition seemed to be on the cards, but at least, not so soon. Nevertheless!

So, that leaves Synopsys, Cadence and Mentor Graphics as the big three EDA vendors, now that Magma has been acquired.

Just a couple of months back, I was in discussion with Rajeev Madhavan, chairman and CEO, Magma, regarding Silicon One technology solutions on the sidelines of MUSIC India. Magma had outlined five technologies: Talus, Tekton, Titan, FineSim and Excalibur and expected to have the opportunity to be a dominant yield management company.

Where has all of this gone, one wonders! It can safely be assumed that the Silicon One series can very well go on, now under the guidance of Synopsys.  However, it will only add up to boosting the revenues of Synopsys in the long run.

Some time ago, one thought that the EDA industry was having four big players. Now, there are three. In between, there was news such as Cadence trying to acquire Mentor Graphics, which did not happen. Even Magma seemed to be doing fine, at least, till 2006-07.

Thereafter, it has been a slightly different story, with not only the CEO leaving Magma India, and some changes in the Indian management team, as well as certain MUSIC India events with less attendances, and so on. One can accept these as the part and parcel for any industry/organization.

On Magma’s website, there is a statement from Madhavan, which says: “Magma and Synopsys have always shared a common goal of enabling chip designers to improve performance, area and power while reducing turnaround time and costs on complex ICs,” said Rajeev Madhavan, CEO of Magma. “By joining forces now we can ensure that chip designers have access to the advanced technology they need for silicon success at 28, 20 nanometer and below.”

All the best to both Synopsys and Magma!

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  1. Sanjeev
    December 1, 2011 at 8:41 am

    I think this is a great move in EDA market. In next coming years, more consolidation is expected, which is good for industry. In coming years, EDA companies have to make significant investment for 20nm, 14nm technologies. This certainly requires a deep pocket and access to larger customer base. I believe the recent acquisitions are not from product per say, but mainly to get access to partner company customer base.

    From customer perspective, it is a win-win situation. Alongwith a competivite quote, they will get rid of integration issue, support issue etc., which will improve productivity and design cycle time too.

    It will be also interesting to watch the Cadence EDA 360 success. Similar kind of move will help to cut down the development cost.

    As a technology person, I would certainly love to see longer product life for Titan and Finesim.

    -Sanjeev

  2. Himanshu
    December 5, 2011 at 6:03 pm

    “Magma and Synopsys have always shared a common goal of enabling chip designers to improve performance, area and pow er while reducing turnaround time and costs on complex ICs,” said Rajeev Madhavan, CEO of Magma. “By joining forces now we can ensure that chip designers have access to the advanced technology they need for silicon success at 28, 20 nanometer and below.”

    If the CEO really feels what he mentions on Magma’s website, then why did he wait for so many years for this and why did he start Magma? He should have just worked with Synopsys in first place? A true salesman, now he again wants to sell to the same customers his new set of products (from Synopsys acquisition). He will never quit selling :)

    I feel that the acquisition is not good for the customers. We just lost one major EDA vendor/one more option and now is that we will have to be dependent on only three guys, instead of four. I hope Cadence should not restart the process buying Mentor now!

    When there is a competition, then only better products coms out in market. Magma did not have any analog offering till a few months back. The company spent close to $80 million to develop their analog tools – Titan, FineSim etc. These tools gave their customers a new technology and productivity compared to the already existing Synopsys/Mentor and Cadence analog tools.

    With this acquisition, customers will be deprived of such tools and the price advantage that they were getting because of the competition. EDA vendors feel that its EDA vendors are the only ones who face such stiff competition and that’s the reason for the limited $4 billion EDA market, but the truth is that the customers have more competitors and they still make their money and margins.

  3. December 5, 2011 at 6:11 pm

    Thanks Himanshu! :) Even I was a bit puzzled when I heard about this. Just this Sept., Magma was announcing all of its series and seminars! And, now, this??

    Well, never mind! If this is the way the industry should go, then who am I to dispute? :)

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